5 Companies Growing Earnings

Betsson tops the list

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Sep 13, 2018
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Companies growing their earnings per share are often good investments because they can return a solid profit to investors. According to the discounted cash flow calculator, the following undervalued companies have grown their earnings over a five-year period.

The earnings per share of Betsson AB (BSTBF, Financial) have grown 8% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 48% margin of safety at $7.3 per share. The price-earnings ratio is 10.78. The stock price is 20.11% below its 52-week high and 22.18% above its 52-week low.

The online gambling company has a market cap of $1.04 billion and an enterprise value of $1.17 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 22.75% and return on assets of 12.27% are outperforming 90% of competitors. Its financial strength is rated 6 out of 10. The cash-debt ratio of 0.33 is below the industry median of 0.71.

Vukile Property Fund Ltd.'s (VKPPF, Financial) earnings per share have grown 24% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 73% margin of safety at $1.41 per share. The price-earnings ratio is 6.23 and the price-book ratio is 0.99.Â

The real estate investment trust has a market cap of $1.14 billion and an enterprise value of $1.52 billion.

GuruFocus gives the company a profitability and growth rating of 5 out of 10. The return on equity of 16.6% and return on assets of 11.55% are outperforming 86% of competitors. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.15 is above the industry median of 0.06.

The earnings per share of Road King Infrastructure Ltd. (RKGXF, Financial) have grown 15% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 68% margin of safety at $1.77 per share. The price-earnings ratio is 3.77 and the price-book ratio is 0.46.

The company, which develops properties for sale and rental, has a market cap of $1.21 billion and an enterprise value of $2.75 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 12.64% and return on assets of 3.99% are outperforming 55% of competitors. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.48 is above the industry median of 0.33.

MTY Food Group Inc.'s (MTYFF, Financial) earnings per share have grown 18% per year over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 44% margin of safety at $46.17 per share. The price-earnings ratio is 15.62. The stock price has been as high as $49.35 and as low as $35.33 in the last 52 weeks.

The company is engaged in the quick service food industry. It has a market cap of $1.21 billion and an enterprise value of $1.4 billion.

GuruFocus gives the company a profitability and growth rating of 8 out of 10. The return on equity of 23.46% and return on assets of 9.8% are outperforming 66% of companies in the Global Restaurant industry. Its financial strength is rated 5 out of 10. The cash-debt ratio of 0.16 is below the industry median of 0.68.

The earnings per share of Chong Hing Bank Ltd. (CGHBF, Financial) have grown 10% annually over the last five years.

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According to the DCF calculator, the stock is undervalued and is trading with a 77% margin of safety at $1.82 per share. The price-earnings ratio is 6.54. While the return on equity of 8.55% is underperforming the sector, the return on assets of 1.04% is outperforming 60% of companies in the Global Banks – Regional – Asia industry.

The bank, which is based in Hong Kong, has a market cap of $1.31 billion.

Disclosure: I do not own any stocks mentioned in this article.